Affordable Autos and Cars

The Coalition Government today announced that a scheme to give drivers who purchase electric car up to £5,000 will still be available despite cuts.

The scheme which will run from early 2011 until March 2012 was planned by the Labour government and would give buyers up to £5,000 off buying one of the growing number of vehicles being launched.

Although originally the scheme had been set up to cover as many as 46,000 vehicles due to budget cuts the government is only setting aside enough for 8,600 (£43 million).

Many believe the scheme has been kept as a goodwill gesture to would be buyers as the upcoming VAT increase could add up to £640 to the cars costs.

Paul Everitt, CEO of the Society for Motor Manufacturers said:

"This is great news for the industry and a significant commitment by the new government to create UK jobs in the emerging market for ultra-low carbon vehicles."

Currently only a couple of electric vehicles are available on the market but that is all set to change once the grant scheme comes in, the cheapest vehicle available will be the Nissan Leaf costing around about £28,000 without the grant.

Although these models will be more expensive buyers will regain the difference in fuel and other running costs in little time.

Transport Secretary Phillip Hammond added:

"We are sending a clear signal that we are committed to greening our economy. This scheme will ensure that the UK is a world leader in low-emission vehicles."

Many have also expressed concern about recharging points for the cars as so far the government has only pledged to develop more points in London, Milton Keynes and North East England.

Replacement parts are also going to be an issue when the vehicles first enter the market so industry experts are recommending that unless you want to be part of the subsidy grant then it may be better to hold off for now.